Consolidated Financial Statements - L. Possehl & Co. mbH

12
Overview 12
Group structure and business activities 12
General economic conditions and course of business 16
Net assets, earnings and fi nancial position 16
Employees 23
Research and development 24
Risk management 25
Supplementary report and outlook 26
Overview | Group structure and business activities
Group Management Report
OVERVIEW
Possehl grows and increases earnings
Fiscal year 2005 was a successful one for the Possehl Group. Following
a decline in the previous year, sales revenues in the
reporting period were able to advance by double digits to
€ 808.7 million. The Group net profi t for the year also
increased signifi cantly by € 9.6 million to € 26.5
million. This positive development pertains to
virtually all Group divisions. The successful acquisition
of the Harburg-Freudenberger Group
on April 1, 2005 also contributed considerably
to the positive sales and earnings trend.
All operating business divisions
developing positively
Following the extensive portfolio changes
made over the last several years, we were
back in the black for all of the operating
business divisions of our Group in fi scal
year 2005.
Growth trend continues as year
commences
The high level of liquid funds on hand and the
good cash fl ow enable us, in addition to internal,
organic growth, to also grow by means of further
acquisitions. Important steps were taken in this direction
at the beginning of the year 2006 through taking over a
majority interest in the Hako Group and through the acquisition of the
Monforts Textilmaschinen Group.
GROUP STRUCTURE AND BUSINESS ACTIVITIES
The Group structure is divided into four business segments
L. Possehl & Co. mbH is the managing holding company of the operational
companies that belong to the Possehl Group. The Possehl Group is involved in the
business segments of Production, Trading, Services and in the management of
investments. The following summary provides an overview of the individual business
segments in the reporting year: